SpaceX eyes U.S. mobile market with new Starlink service

SpaceX, the Elon Musk-led aerospace company, is reportedly planning to enter the U.S. mobile market with a new Starlink service for consumers. The Financial Times reported that SpaceX has informed investors of its intentions, which could position the company as a direct competitor to established carriers like Verizon, AT&T, and T-Mobile.

This potential venture builds upon SpaceX's existing collaboration with T-Mobile, which offers direct-to-cell connectivity from space to extend internet access to remote areas. SpaceX President Gwynne Shotwell indicated to investors during a recent roadshow that the company is considering launching a Starlink retail product and might establish its own U.S. terrestrial mobile network.

SpaceX has been acquiring wireless spectrum licenses, notably from EchoStar. In September, it purchased licenses for approximately $17 billion, followed by another acquisition for $2.6 billion in November. These acquisitions provide SpaceX with the necessary airwaves to develop a robust and affordable direct-to-cell service.

Brokerage firm Oppenheimer noted earlier this month that Starlink's expansion could significantly disrupt the $1.6 trillion U.S. communications industry. The firm's assessment is based on Starlink's current success, with over 10 million subscribers, and its launch business, which analysts and investors believe has revolutionized access to orbit.